Finding the next big trend is the goal many aggressive investors have. Getting in on the ground floor and shooting up the elevator of growth is a dream many have.
This dream can be realized but also carries a significant amount of risk. As we’ve seen with the recent popping of the recent cryptocurrency and cannabis bubbles, following trends and investing in certain overcrowded trades can prove to be a very costly strategy.
That said, certain secular growth trends such as e-commerce, video conferencing and internet collaboration tools have seen a spike in interest in the new COVID lens investors are using to view the world.
These secular trends have accelerated as demand for these services has surged.
Many analysts have noted that we’ve likely seen five or more years of growth in less than one year. This can be directly attributed to the tragic coronavirus pandemic which has fundamentally shifted how we conduct business globally.
The trends which have accelerated are ones I believe will continue to grow long term. This pandemic has caused a collective reflection on the valuations we give companies based on such growth as well as which assets are deemed safe havens rather than risk assets.
I would encourage all investors to focus on secular trends that have outperformed in the past and invest in those companies with the best quality balance sheets, for the long term.
Invest wisely, my friends.
